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Hancey Law Offices

Hancey Law Offices

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Can I Charge Compound Interest?

Our firm has dealt with several collection matters where the issue of compound interest was disputed. Utah law disfavors compound interest.  However, most of us use Quickbooks and Quickbooks favors compound interest.

 

I suggest you look at your various invoices, contracts, order forms and the like and see how you have referenced interest.  You will want to include language that specifically states the term of the compound interest and also avoid any “APR” language.  The APR language is designed to help explain how much higher the interest rate effectively is based upon the way it is compounded.  The formula is quite complex, so unless you know exactly how you are calculating it, I suggest you stay clear of referencing APR.

 

I would be happy to assist you with this and other matters. Can I Charge Compound Interest


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